MEMORANDUM

DISCUSSION:

This memorandum is to clarify the definition of significant return from the sale or disposition of real estate or personal property for the Food Stamp Program.

A return is the amount an individual could expect to receive from the sale or disposition of a resource, minus any cost associated with the sale or disposition.  To be a significant return, the return amount must be at least $1,500.  If the return amount is less than $1,500, the resource is excluded.  If the return is $1,500 or more, it is included as a resource. 

Determining if there is a significant return

Consider the following when applying significant return policy:

• Significant return policy is only applicable when determining the value of real property (RP) and personal property (PP).
• The $1,500 applies to each resource. 
• If the individual is a joint owner, only the amount s/he would receive is used in the significant return determination.
• Client statement of personal property value is acceptable unless questionable.

Entering the Significant Return in FAMIS

Use the following table as an example of how to enter the significant return determination in FAMIS.  Enter a “Y” in the significant return field on the Real Property (FMW4) or Personal Property (FMW2) screen if the return on each resource is $1,500 or more.  Enter an “N” in the significant return field if the return on each resource is less than $1,500.

John and Susan have applied for Food Stamp benefits and have declared these resources:
Resource Class	Resource Type	Owner	Value	Loan	Cost to Sell	Return	Entry in Significant Return Field	Value of Resource FAMIS considers
PP	Motorboat	Susan	$20,000	$19,000	$0	$1,000	N	$0
RP	Lot	John/Susan	$10,000	$8,000	$500	$1,500	Y	$1,500
RP	Lot	John and his brother Joseph own half each	$10,000	$7,000	$500	$2500, but only half ($1250)   is John's.	N	$0
RP	Building	John/Susan	$30,000	$28,000	$1,000	$1,000	N	$0
					TOTAL AVAILABLE RESOURCES			$1,500

The Food Stamp Manual section 1110.020.20 Real and Personal Property is updated to include this clarification.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

KSO/NY